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Transcript of Parallel_Ledger
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IBM Corporation
Parallel Accounting in mySAP
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© 2006 IBM CorporationPage 2
Chapter Object ives:
● Understand need for parallel Accounting● Understand different solutions for parallel Accounting
● Understand use of parallel Ledgers
● Distinguish between Leading / Non-Leading Ledgers
● Create and Activate of parallel ledgers
● Understanding the use of Ledger Group● Use of Document type of GL view
● Use of Document number ranges for GL view
● Parallel Accounting in Asset Accounting
● Configuration of Delta Depreciation Area
● Use Parallel Ledgers for Foreign Currency Valuation● Difference to Classic General Ledger
● Differences to Special Purpose Ledger
● Differences to Classic Profit Center Accounting
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© 2006 IBM CorporationPage 3
Paral lel Account ing - Introduct ion
In Europe, all publicly traded companies must submit their consolidated financialstatements according to the International Financial Reporting Standards (IFRS),in addition to the country-specific local legal accounting standards. Meanwhile,companies listed in the United States or belonging to a US group must alsocomply with US Generally Accepted Accounting Principles (GAAP) accountingstandards
Parallel accounting means that postings and financial statement reports are madeseparately and simultaneously in accordance with all required accountingstandards.
Example: Parallel accounting is necessary for a German subsidiary of an American group. The German subsidiary has to create financial statementsaccording to the accounting principles of the group (such as US GAAP) as wellas according to German commercial law (HGB).
The following approaches to portray parallel accounting in SAP System:
● Using Additional Accounts● Using Additional Company Code.● Using Parallel Ledgers
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Paral lel Accoun t ing Using Addi t ional Accounts
One joint account area for postings that are the same for both accountingprinciples
One area with specific accounts for each accounting principle. Each
business transaction that, dependent on the accounting principle, leads
to a different posting, is posted to the corresponding specific account
area.
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Paral lel Accoun t ing using Using Addi t ional
Company Code
Company Code SolutionDifference postings are created for additional accounting and posted to
the additional company code. Reporting covers the actual company code
and the additional company code
You can post to an additional company code with the following valuation
reports:● Value Adjustment
● Reclassification and Sorting of Receivables and Payables
● Foreign Currency Valuation
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Paral lel Accoun t ing Using Paral lel Ledgers
In General Ledger Accounting, you can perform parallel accounting byrunning several parallel ledgers (general ledgers) for different accounting
principles. During posting, you can post data to all ledgers, to a specified
selection of ledgers, or to a single ledger.
Advantages: You can manage a separate ledger for each accounting principle.
You can use standard reporting for the leading ledger and all other
parallel ledgers.
With this solution scenario, you can portray different fiscal year variants.
The number of general ledger accounts is manageable.
Disadvantage:
The use of parallel ledgers increases the volume of data.
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Parallel Ledgers in New GL
The New General Ledger supports Parallel Accounting by using Either parallel accounts or parallel ledgers. In New GL, both approaches are considered equally powerful. Thechoice will depend on the specific customer situation. The parallel accounts approach in the New GL is as powerful as inclassic GL in R/3.
The parallel ledgers approach in the New GL is much better than TheSAP R/3 approach of using classic GL plus the special ledger application. Any number of parallel ledgers
o For parallel valuation –local GAAP, group GAAP, tax purposes
o For different fiscal year variants
Same UI for all ledgers (data entry, functions, reporting) Almost the same functionality for all ledgers Standard reporting for multiple ledgers Postings into multiple ledgers Postings per specific ledger Closing activities are run separately in parallel ledgers.
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Parallel Ledgers: In trodu ct ion
Parallel ledgers facilitate parallel financial reporting
mySAP allows you to create multiple ledgers which operate in
parallel to cater to different accounting requirements.
Additional non-leading ledgers are added in addition to the leadingledger
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Paral lel Ledgers
Each ledger represents one of the accounting standards.The system posts to all ledgers unless otherwise specified by the
configuration or the user.
Accounting standard-specific postings are made to specified ledgers only.
All accounting transactions (e.g., invoice against receivables, vendor
invoice, or material procurement) are posted to all ledgerssimultaneously.
Valuation differences such as foreign currency valuation, asset
acquisitions, and depreciation necessitated by different accounting
principles are posted only to the necessary ledgers.
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Design : Leading Ledger Integration
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Basic components and operat ion of paral lel
accoun t ing in New GL
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Leading & Non-Leading Ledgers
Leading Ledgers: There is exactly one leading ledger in every client.
In Customizing it is determined, which ledger in a client is assigned
the role of leading ledger.
The leading ledger reflects the accounting principle which is used to
generate the consolidated financial statement. It is integrated with allsub ledgers and updated in all company codes (if posting is not
ledger-specific)
Non-Leading Ledgers:
Activated separately for each company code
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Ledger : Attr ibu tes
The Primary Deprecation Area (01) of Asset Accounting must beposted to the Leading Ledger.
Controlling must also be integrated to the Leading Ledger
The leading ledger inherits precisely these settings of this posting
code in every company code:
Fiscal year variant of the company codeCurrency of the company code
Non-leading ledgers must be activated for the respective
company code. For every company code, you can have
different fiscal year variants and sub-quantities of the second
and third house currency of the leading ledger in the respectivecompany code. The first currency is always maintained in all
non-leading ledgers.
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Act ivat ing Non-Leading Ledgers
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Scenar io Assignment
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Ledger Group
Definition: ledger group is a combination of ledgers for the purpose of applying the functions and processes of General Ledger Accounting to
the group as a whole
● You can combine any number of ledgers in a ledger group
● Each ledger is automatically created as a ledger group with the same
name● If you do not enter ledger group, processing is performed automatically
for all ledgers
● When you define ledger group, you have to designate one of the
assigned ledger as the representative ledger for that group
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Represen tat ive Ledger of a Ledger Group
● There is exactly one representative ledger in each ledger group● If the ledger group has a leading ledger, the leading ledger must bedesignated as the representative ledger.
● Significance of the representative ledger:Derivation of the period determination for the entry view.The system uses the representative ledger to determine the posting
period during posting and to check whether the posting period is open● If all ledgers in the ledger group have a different fiscal year variant tothat of the company code, you can designate any ledger as therepresentative ledger.
● If one of the ledgers in the ledger group has the same fiscal year variantas that of the company code, you must designate that ledger as the
representative ledger ● Attention:
If the posting periods of the representative ledger are open thenpostings are made in all other ledgers, even if their periods are closed.
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Account ing Document View
Press this button todisplay the GL view
on the non – leading
ledger
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Parallel Ledger Direct Document Entry
A new FI posting transaction is delivered in which the Ledger group can be
specified:
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Paral lel Ledgers – Post ing to al l Ledgers
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Paral lel Ledger – Post ing to a sing le ledger
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Paral lel Accoun t ing fo r Primary Processes
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Subsequent process
e.g. according to IAS
e.g. allocation, foreign currencyvaluation, balance carry-over …
Subsequent process
e.g. acc. to local GAAP
e.g. allocation, foreign currencyvaluation, balance carry-over …
Ledger 0ALedger 0L
Creation of parallel accounting
documents for every valuation
Real parallelism with regards
to valuation, period sorting and
selection of characteristics
New G/L
Accounting Interface
Online Split, Substitution….
Accounting InterfaceOnline Split, Substitution….
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Paral lel Ledgers – Secondary Processes
In configuration, Accounting Principles are defined (e.g. GAAP) andsubsequently assigned to both:
Parallel ledgers
Valuation areas
Account determination can then be defined uniquely per Valuation area when
configuring secondary processes
It is possible to re-run the process for each valuation area e.g.:
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Define Document Types fo r General Ledger View
1. No need to make these settings for your leading ledger because, in thecase of this ledger, the document number in the entry view always
corresponds to the document number in the general ledger view.
2. Make these settings for any non-leading ledgers that have a fiscal year
variant that differs from the fiscal year variant of the leading ledger in
this company code.● In this case, the document number in the entry view does not correspond to
the document number in the general ledger view
3. The need to define a document type for documents in the general
ledger view depends only on whether the fiscal year variant of the non-
leading ledger in the company code (to which the postings are made)
differs from the fiscal year variant of the leading ledger in this company
code.
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Def ine Document type for entry view in one
ledger
1. Specifying the document type for postings to non-leading ledgers inDocument entry transactions.
2. To define document types for postings to non-leading ledgers, Set up
a separate document type for these postings. Assign a unique number
range to this document type for each ledger.
3. Example:Document Type SX, Closing Postings, Ledger L2, Number Range 91
Document Type SX, Closing Postings, Ledger L3, Number Range 92
4. By segregating the ledger-related postings (here, for the non-leading
ledgers) in a separate number range, you ensure the contiguous
assignment of document numbers at the ledger level for each number
range.
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Paral lel Account ing in Asset Accoun t ing
Each parallel valuation is defined in the New GL as a ledger group and
in AA as Depreciation Areas
Depreciation Area 01 must be assigned to the leading ledger
In AA, each parallel valuation is depicted by two Depreciation Areas
(one real, the other derived) – both are assigned to the same ledger
group
The derived area keeps track of valuation differences between area 01and the parallel area
These differences can be posted periodically to the parallel ledgers so
that the values in the asset sub-ledger are correctly reflected in the
New GL
Implication: additional GL accounts/financial statement versions arenot required to report across all ledger groups (valuations) when the
parallel ledger approach is used.
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GL w ith Asset Account ing : Parallel Ledgers
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GL with Asset Account ing : Asset Transact ion
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Making Sett ings fo r Paral lel Ledgers in FI-AA
Real Depreciation Area: –In Customizing for Financial Accounting (New), choose Asset Accounting
Valuation Depreciation Areas Define Depreciation Areas.
– Assign both depreciation areas to the same ledger group.
–The ledger group you assign them to is not allowed to contain the leading
ledger. –In the Posting in G/L field, choose Area Posts Depreciation Only.
Derived Depreciation Area:
–It is easiest to create the derived depreciation area using the Wizard.
–In Customizing for Financial Accounting (New), choose Asset Accounting
Valuation Depreciation Areas Set Up Areas for Parallel Valuation.
–In the Posting in G/L field, choose Area Posts APC Only. Specify that this
derived depreciation area represents the difference between the real
depreciation area for parallel accounting and the master depreciation area.
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GL w ith Asset Account ing : Depreciat ion
If parallel ledgers are to be mapped in GL, then the depreciation isposted to the ledger assigned to the depreciation area:
Dep.
Area
Name Posting Indicator Ledger
Group
1 Local accounting principle Online 0L
30 IFRS Depreciation only DS
60 Adjustment area 30-01 APC only DS
The depreciation run posts the depreciation for area 01 to the IAS
ledger and the depreciation for area 30 to the US GAAP ledger.
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Setting up Parallel ValuationSAP Customizing IMG -----> Financial Accounting ( New ) ------> Asset
Accounting ------> Valuation ----->Depreciation Areas ------> Set up
Areas for Parallel Valuation
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Setting up Parallel Valuation cotn…
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Setting up Parallel Valuation cotn…
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Setting up Parallel Valuation cotn…
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Setting up Parallel Valuation cotn…
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Setting up Parallel Valuation cotn…
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Setting up Parallel Valuation cotn…
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Asset Balances in Master Depreciat ion A rea
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Asset balances in Paral lel Depreciat ion Area
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Asset Balances in Delta Depreciat ion Area
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Period ic APC pos t ing in paral lel ledgers
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Account Balances in Paral lel Ledgers
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Asset Balance in Financ ial statements
Balances in Leading Ledger Balances in Non Leading Ledger
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Asset Reti rement
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Loss in Leading Ledger
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Loss in Paral lel Ledger
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Values posted in Delta Depreciat ion Area
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Gain/Loss on disposal in Dif ferent Ledgers
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Difference to the Class ic General Ledger
New Functions: – Online Document Breakdown
– Allocation
– Rollup
– Planning on characteristics combination
Functions not available in New General Ledger:
– Balance sheet and P&L adjustment (replaced by online document
breakdown function)
– Foreign currency valuation: Valuation with updating (BDIFF).(Replaced by the tech-nique of posting and reposting)
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Difference to FI-SL
New Functions: – Activation of additional fields for totals reporting by activating standard
scenarios (functional area, segment, business area). Technicallysimpler implementation.
–Definition of other additional fields via expanded offer of standardfields.
Functions not available in New General Ledger:
–Transaction GB01
–Definition of transfer rules (not necessary anymore, because of automatic update of new totals table FAGLFLEXA).
–Rollup
• Hierarchy rollup• Rollup in ALE environment• Creating rollup line items
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Dif ference to Class ic Prof i t Center Accoun t ing
New Functions: – Online Document Breakdown
Functions not available in New General Ledger:
–Transfer prices
–Statistical key figures
–Open item reports per profit center
–Periodical transfer of balance sheet items (replaced by online
document breakdown)
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Parallel Ledgers: Chapter Summary
Understand need for parallel Accounting● Understand different solutions for parallel Accounting● Understand use of parallel Ledgers● Distinguish between Leading / Non-Leading Ledgers● Create and Activate of parallel ledgers
● Understanding the use of Ledger Group● Use of Document type of GL view● Use of Document number ranges for GL view● Parallel Accounting in Asset Accounting● Configuration of Delta Depreciation Area● Use Parallel Ledgers for Foreign Currency Valuation
● Difference to Classic General Ledger ● Differences to Special Purpose Ledger ● Differences to Classic Profit Center Accounting